How many of us remember the double-digit interest rates of the early 1980s? What do you notice in the story below? What are you wondering about? Leave a comment to tell us your thoughts!
One year, on December 31, Curtis, who doesn’t trust banks, put $1000 in a can and buried it in his back yard. He plans to continue adding $1000 to the can on the last day of each year until he’s ready to retire.
On the same day, Bill invested $1000 in a bank account that will pay 10% interest annually on the last day of the year. Unlike Curtis, he does not plan to continue investing more money each year.